I'm trading own-account at Refco's london office for $1.10 round turn on CME instruments, non-member rate.
POLL! How Much Do You Pay Per Contract
- Thread starter Pabst
- Start date
that rate is for 25,000RT though admittedly I do most of my volume on LIFFE futures at the moment, Refco dont discriminate between exchange and as long as my total volume is high enough I get the lowest rate.
it basically breaks down to (per side):
0.34c exchange fee
0.10c globex fee
0.02c NFA fee
0.09c Refco clearing fee
Presumably Refco are on the CME's European Incentive Scheme rate system, or have some kind of corporate membership. If I were to get my own CME membership then obviously the fee's would be lower.
total 0.55c per side - though Refco's highest rate for less than 5,000 RT is only 0.68c per side / $1.36 RT, not exactly expensive
it basically breaks down to (per side):
0.34c exchange fee
0.10c globex fee
0.02c NFA fee
0.09c Refco clearing fee
Presumably Refco are on the CME's European Incentive Scheme rate system, or have some kind of corporate membership. If I were to get my own CME membership then obviously the fee's would be lower.
total 0.55c per side - though Refco's highest rate for less than 5,000 RT is only 0.68c per side / $1.36 RT, not exactly expensive
I'm a member of both the CME and CBOT. The feasibility of leasing/buying a seat or not is completely dependent on your trading plans and how much volume you do per month. If you have enough money to buy a seat at the CME, then you should put up enough money to trade through an FCM at professional rates with a progressive cap. You can use treasuries in most places as collateral, if you like. You will need at least $25k.
Good luck.
Thanks FT71...informative and useful info as usual.
NihabaAshi
This means that as you play more and more commission, your rate goes down because the clearing firm secures it minimum profit and then gives you discounts from there.
An example would be:
$1.00 per turn up to $6000 in commission paid
$.80/RT to $10000
$.50/RT to $14000
$0.10/RT above $16,000 in commission paid per year
Now remember that I'm talking about commissions only; not exchange and clearing fees or NFA. The exchange fee is determined by your membership level and your clearing firm can't do anything about that.
Good luck.